On August 14, Applied Materials declined 5.14% overnight, trading at $508.38/share, with turnover of $166,900. The drop followed the release of fiscal Q3 results after the prior session's close.

Applied Materials reported fiscal Q3 adjusted EPS of $3.50, beating the consensus estimate of $3.40 by 2.94%, representing a 41.13% year-over-year increase. Revenue came in at $9.115 billion, surpassing the $8.991 billion estimate. The company issued fiscal Q4 guidance with revenue of approximately $10.25 billion (range $9.75B-$10.75B), well above the FactSet estimate of $9.55 billion, and projected adjusted EPS of $4.02, far exceeding the $3.72 consensus. Management highlighted unprecedented demand, with major customers providing rolling eight-quarter forecasts to support capacity ramps, and projected over 20% revenue growth for calendar year 2026.

Despite the comprehensive beat-and-raise, the stock experienced selling pressure in a classic profit-taking move. With shares having already more than doubled year-to-date prior to the report, the market exhibited elevated expectations that even strong results could not satisfy.

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